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Revenue and related accounts

3 Months Ended

Sep. 30, 2025

2. Revenue and related accounts.

Accounts Receivable, net. Accounts receivable are presented in the condensed consolidated balance sheets at their outstanding balances net of the allowance for credit losses. The allowance for credit losses was $122,000 at both September 30, 2025 and June 30, 2025. These receivables are generally trade receivables due in one year or less or expected to be billed and collected within one year. The Company estimates credit losses on accounts receivable in accordance with ASC 326 Financial Instruments - Credit Losses. The Company measures the allowance for credit losses on trade receivables on a collective (pool) basis when similar risk characteristics exist. The estimate for allowance for credit losses is based on a historical loss rate for each pool. Management considers qualitative factors such as changes in economic factors, regulatory matters, and industry trends to determine if an allowance should be further adjusted. The provision for credit losses is included in selling, general, and administrative expenses on the condensed consolidated statements of operations and comprehensive loss.

Prepaid Expenses and Other Current Assets. The Company records a prepaid expense when it has paid for a good or service that it has not yet incurred. As of September 30, 2025 and June 30, 2025, the Company had paid $329,000 and $887,000, respectively, for bulbs to be received in fiscal year 2026. The balance in prepaids and other current assets includes $813,000 of ex-force bulbs as of September 30, 2025. As of June 30, 2025, ex-force bulbs were included in other assets.

Revenue. The following table presents revenue disaggregated by customer, as determined by the operational nature of their industry:


	Three Months Ended		Three Months Ended
	September 30, 2025		September 30, 2024
Supermarket	$	4,874,000	$	5,611,000
Wholesaler		259,000		792,000
Other		20,000		225,000
	$	5,153,000	$	6,628,000

During the three months ended September 30, 2025 and 2024, the Company had three customers that accounted for 10% or more of the total revenues. During the three months ended September 30, 2025, three customers accounted for approximately 32%, 19%, and 18% of revenues, respectively. During the three months ended September 30, 2024, three customers accounted for approximately 30%, 14%, and 13% of revenues, respectively. As of September 30, 2025, two of these customers also accounted for approximately 29% and 18% of accounts receivable, net. As of June 30, 2025, three customers accounted for approximately 26%, 15%, and 10% of accounts receivable, net. The loss of a major customer could adversely affect the Company’s operating results and financial condition.

Cost of Sales. Cost of sales consists primarily of costs to procure, sort, pick, cool, and transport bulbs. Additionally, cost of sales includes labor and facility costs related to production operations. Inventories are stated at the lower of cost, as determined on the first-in, first-out method, or net realizable value.